LEADER 05889oam 22013814 450 001 9910788247103321 005 20230721045632.0 010 $a1-4623-9718-2 010 $a1-4527-9450-2 010 $a1-4518-6868-5 010 $a9786612840395 010 $a1-282-84039-8 035 $a(CKB)3170000000054987 035 $a(EBL)1607696 035 $a(SSID)ssj0000940806 035 $a(PQKBManifestationID)11499077 035 $a(PQKBTitleCode)TC0000940806 035 $a(PQKBWorkID)10955753 035 $a(PQKB)11011623 035 $a(OCoLC)535146970 035 $a(MiAaPQ)EBC1607696 035 $a(IMF)WPIEE2008006 035 $a(EXLCZ)993170000000054987 100 $a20020129d2008 uf 0 101 0 $aeng 135 $aur|n|---||||| 181 $ctxt 182 $cc 183 $acr 200 10$aFinancial Instruments to Hedge Commodity Price Risk for Developing Countries /$fYinqiu Lu, Salih Neftci 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2008. 215 $a1 online resource (22 p.) 225 1 $aIMF Working Papers 300 $a"January 2008." 311 $a1-4519-1321-4 320 $aIncludes bibliographical references (p. 19-20). 327 $aContents; I. Introduction; II. Smooth fluctuations in Commodity Revenue Collections-Option Transactions; A. Plain Vanilla Options; Figures; 1. A Put Option Structure; B. Risk Reversals; Tables; 1. Prices of ATM Options; 2. Prices of 20 Percent OTM Options; 2. A Zero Premium Risk Reversal Structure; C. Barrier Option Structures; 3. Prices of the Up-and-Out Put Options: H=120; 3. A Knock-out Option; III. Smooth Borrowing Cost-A Structured Product; A. The Instrument; B. Intermediary; 4. The Structure of the New Instrument; C. Pricing; 5 The Involvement of Investment Bank as an Intermediary 330 3 $aMany developing economies are heavily exposed to commodity markets, leaving them vulnerable to the vagaries of international commodity prices. This paper examines the use of commodity options-including plain vanilla, risk reversal, and barrier options-to hedge such risk. It then proposes the use of a new structured product-a sovereign Eurobond with an embedded option on a specific commodity price. By extracting commodity price risk out of the bond, such an instrument insulates the bond default risk from commodity price movements, allowing it to be marketed at a lower credit spread. The product is also designed to help developing countries establish a credit derivatives market, which would in turn enhance the marketability and liquidity of sovereign bonds. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2008/006 606 $aPrices$zDeveloping countries 606 $aCommercial products$xEconomic aspects$zDeveloping countries 606 $aRevenue$zDeveloping countries 606 $aOptions (Finance)$zDeveloping countries 606 $aBanks and Banking$2imf 606 $aInvestments: Commodities$2imf 606 $aInvestments: Options$2imf 606 $aMacroeconomics$2imf 606 $aMoney and Monetary Policy$2imf 606 $aPension Funds$2imf 606 $aNon-bank Financial Institutions$2imf 606 $aFinancial Instruments$2imf 606 $aInstitutional Investors$2imf 606 $aCommodity Markets$2imf 606 $aMonetary Policy, Central Banking, and the Supply of Money and Credit: General$2imf 606 $aFinancing Policy$2imf 606 $aFinancial Risk and Risk Management$2imf 606 $aCapital and Ownership Structure$2imf 606 $aValue of Firms$2imf 606 $aGoodwill$2imf 606 $aFinance$2imf 606 $aMonetary economics$2imf 606 $aInvestment & securities$2imf 606 $aFinancial services law & regulation$2imf 606 $aOptions$2imf 606 $aCommodity prices$2imf 606 $aCredit default swap$2imf 606 $aCommodities$2imf 606 $aHedging$2imf 606 $aDerivative securities$2imf 606 $aPrices$2imf 606 $aCredit$2imf 606 $aCommercial products$2imf 606 $aFinancial risk management$2imf 607 $aDeveloping countries$xEconomic policy 607 $aDeveloping countries$xEconomic conditions 607 $aChile$2imf 615 0$aPrices 615 0$aCommercial products$xEconomic aspects 615 0$aRevenue 615 0$aOptions (Finance) 615 7$aBanks and Banking 615 7$aInvestments: Commodities 615 7$aInvestments: Options 615 7$aMacroeconomics 615 7$aMoney and Monetary Policy 615 7$aPension Funds 615 7$aNon-bank Financial Institutions 615 7$aFinancial Instruments 615 7$aInstitutional Investors 615 7$aCommodity Markets 615 7$aMonetary Policy, Central Banking, and the Supply of Money and Credit: General 615 7$aFinancing Policy 615 7$aFinancial Risk and Risk Management 615 7$aCapital and Ownership Structure 615 7$aValue of Firms 615 7$aGoodwill 615 7$aFinance 615 7$aMonetary economics 615 7$aInvestment & securities 615 7$aFinancial services law & regulation 615 7$aOptions 615 7$aCommodity prices 615 7$aCredit default swap 615 7$aCommodities 615 7$aHedging 615 7$aDerivative securities 615 7$aPrices 615 7$aCredit 615 7$aCommercial products 615 7$aFinancial risk management 700 $aLu$b Yinqiu$01114888 701 $aNeftci$b Salih$01464028 712 02$aInternational Monetary Fund.$bMonetary and Capital Markets Dept. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910788247103321 996 $aFinancial Instruments to Hedge Commodity Price Risk for Developing Countries$93673580 997 $aUNINA